Bitlayer is a Bitcoin Layer 2 platform that helps enhance and increase the programmability of Bitcoin while maintaining its security, thanks to the application of BitVM, Rollup, and ZK proofs.
Bitlayer facilitates the development of DeFi, NFTs, and Web3 applications on Bitcoin, while connecting the ecosystem through EVM compatibility and the trustless BitVM Bridge.
MAIN CONTENT
Bitlayer pioneers the development of Layer 2 for Bitcoin, bringing scalability along with strong security.
The applications of BitVM, Rollup, ZK proofs, and trustless bridges expand DeFi, NFTs, and GameFi on the Bitcoin platform.
Backed by many large investment funds, a team of experienced founders, Token BTR plays a central role in developing the ecosystem.
What is Bitlayer (BTR)?
Bitlayer is a Layer 2 platform on Bitcoin, built on new technologies BitVM and ZK proofs, aimed at resolving Bitcoin's limitations in security, transaction speed, and logic smart contract scalability.
Designed as a 'operating system for Bitcoin DeFi', Bitlayer adds Turing-complete programmability, EVM compatibility, supports moving dApps from Ethereum and has the trustless BitVM Bridge for BTC transfers between Layer 1 and 2. Notably, Bitlayer's roadmap aims for a performance of 20,000 TPS and a confirmation time of only 3 seconds by the end of 2025.
According to Messari's 2023 report, Layer 2 projects play a crucial role in upgrading features and applications for the native blockchain. Bitlayer continues this trend by focusing on optimizing security, scalability, and interoperability with the Web3 ecosystem.
Bitlayer emerges at a time when Bitcoin needs change, not just to be 'digital gold', but to become a true platform for global decentralized applications.
Charlie Yechuan Hu – Co-Founder & CEO of Bitlayer, 2024
What are the highlights of Bitlayer?
The highlight of Bitlayer is the combination of absolute security with high transaction processing speed, providing a powerful programming platform compatible with Ethereum, along with transparent connectivity through the trustless BitVM Bridge.
Unlike many Layer 2 solutions that often trade off some decentralization or security for performance, Bitlayer applies a Security-equivalent model, ensuring that all transactions on Layer 2 are still tightly protected by the original Bitcoin network. The ecosystem also easily integrates DeFi, NFT, lending, and trading solutions using BTC thanks to BitVM technology and trustless bridges.
For example, Bitlayer aims to achieve 20,000 TPS, much higher than most Layer 2 solutions at the same time, helping Bitcoin approach the performance of renowned blockchains like Solana. Thanks to EVM compatibility, any Ethereum developer can bring their dApps to Bitlayer without rewriting the source code.
Bitlayer's EVM compatibility not only helps expand dApps but also promotes network effects in the Bitcoin-based DeFi world.
Kevin Changbin He – CTO of Bitlayer, 2024
How is Bitlayer's operating model built?
Bitlayer is based on a combination of Rollup, BitVM, ZK Proofs, and OP-DLC to optimize security, speed, and programmability. This model is divided into multiple layers and has a clear transaction processing procedure, ensuring safety, transparency, and high efficiency.
The three basic architectural layers of Bitlayer include: Bitlayer PoS (V1) using Proof of Stake for testing; Bitlayer Rollup (V2) responsible for off-chain transaction processing, compressing and verifying on the native Bitcoin using zk-proofs and BitVM; and BitVM Bridge – a decentralized bridge that verifies capital flow without a third party. Additionally, the EVM Compatibility layer ensures that all applications from Ethereum can be deployed on Bitlayer.
What are the main components in Bitlayer's architecture?
Bitlayer's architecture consists of many specialized components aimed at optimizing performance and user experience. Bitlayer PoS tests core features on the network with nodes and validators, laying the groundwork for asset handling and transactions on Layer 2.
Bitlayer Rollup processes transactions off-chain, aggregates them into batches, sends verification back to the Bitcoin blockchain, while using BitVM to verify the state of smart contracts without modifying the Bitcoin protocol. BitVM Bridge is a trustless bridge that verifies transactions, eliminating intermediary risks. The EVM Compatibility layer allows applications written in Solidity to be deployed on Bitcoin, making the Web3 ecosystem easily scalable.
How does the transaction processing on Bitlayer happen?
The processing procedure on Bitlayer consists of 6 sequential steps, from application initialization, deployment – smart contract verification, to reward distribution and withdrawal back to the original Bitcoin:
Developers integrate dApp using Hardhat, Truffle, MetaMask…
Smart contracts are brought to Layer 2, verified by BitVM – Rollup transfers the state back to L1.
Sequencer creates batches, Prover generates zk-proofs, Challenger monitors fraud.
Users transfer BTC through the BitVM Bridge from L1 to L2 without the need for an intermediary.
Rewards from staking, voting, and inflation are allocated based on actual contributions.
When withdrawing BTC back to L1, zk proofs ensure absolute trustlessness.
According to Chainalysis's 2023 research, trustless bridges significantly reduce the risk of security breaches compared to traditional centralized bridge solutions.
What benefits does Bitlayer's operating model bring?
The biggest benefits include ultra-fast processing speeds – targeting 20,000 TPS, low fees, preserving the security power of Bitcoin, and completely eliminating intermediaries for BTC deposits and withdrawals between L1 and L2.
Bitlayer allows developers, users, and validators to benefit from clear incentives from the ecosystem, promoting long-term engagement and development on the Bitcoin platform. At the same time, the ability to integrate dApps, DeFi, and NFTs directly on Bitcoin is a significant advancement compared to previous blockchain models.
Information about Token BTR and Tokenomics
Token BTR is the native Token of Bitlayer, used in governance, staking, fees, and incentivizing the ecosystem, with a total supply of 1 billion, following the ERC-20 standard. The allocation method and repayment roadmap are designed transparently, inflation-proof, and provide long-term support for both the community and technology development.
BTR is allocated as follows: 40% for Ecosystem Incentive (unlock 20% at TGE, the remainder unlocks gradually over 48 months), 19.3% for Investors (locked for 6 months, gradually released over 24 months), 15% for Team (locked for the first year, then unlocks over the next 2 years), 9% Public Distribution (released immediately at TGE), 8.7% Node Incentive, 6% Treasury, 2% Liquidity.
A transparent tokenomics with reasonable allocation supports community development while protecting the interests of investors and the team – a critical factor for sustainable ecosystem development.
Delphi Digital report, Q1 2024
Token BTR plays a significant role in staking, voting for validators, proposing upgrades, and adjusting transaction fees. Additionally, airdrop rewards, incentive programs, and incentives for developers all use BTR to promote ecosystem building.
Transaction fees are redistributed to stakers, returned to the treasury, or used for Token buybacks, thereby helping to increase the sustainable value of the BTR Token. All major governance voting rights of the protocol require BTR holders to participate, ensuring a transparent mechanism.
Development team, Investors, and Partners
What stands out about the Bitlayer development team?
The Bitlayer team gathers experienced experts from major blockchain projects such as Polygon, Polkadot, Tezos, and Huobi. Two key leaders are CEO Charlie Yechuan Hu, who initiated BitVM, and CTO Kevin Changbin He, the 'father' of Heco Chain and a leading expert on EVM-chain, ZK-Rollup.
The Bitcoin ecosystem needs a radical innovation from technology architects, and the Bitlayer team represents a generation of creative experts leading the BTCFi wave.
TechCrunch analysis page, 2024
Experience from deploying major chains gives Bitlayer a solid foundation both technically and in community building. The founding team plays a coordinating role in strategy, leading technical roadmaps as well as ecosystem-wide decision-making.
Who are the investors of Bitlayer?
Bitlayer attracts capital from many large VCs globally. Specifically:
Seed round in March 2024 raised 5 million USD (Framework Ventures, ABCDE lead; OKX Ventures, Alliance DAO, Paul Taylor… participated).
Series A in July 2024 valued at 300 million USD, continuing to raise an additional 11 million USD (Franklin Templeton along with ABCDE lead; GSR, Flow Trader, Caladan, Skyland Ventures… participated).
Extended Series A in October 2024; an additional 9 million USD (Polychain Capital, Franklin Templeton lead; Selini Capital, V3V Ventures, MN Capital…).
ICO Coinlist in July–August 2025 raised 4 million USD (sale price 0.2 USD/BTR, 20 million BTR sold unlocks fully at TGE).
The emergence of Franklin Templeton and Polychain Capital, two of the largest asset management and VC firms globally, not only boosts confidence in financial potential but also shows that Bitlayer is on the right track with modern BTCFi trends.
Who are Bitlayer's partners?
The Bitlayer ecosystem is expanding thanks to collaborations with many major players in the Web3 industry such as StarkWare (developing StarkNet, a zk-proof solution), Alliance DAO (a global Web3 startup incubator), Gate Labs (investment from Gate.io exchange), along with research units, and the Web3Port community development, Global Coin Research, Faculty Group.
This diversity affirms that Bitlayer is not only building technical solutions but also aiming for a comprehensive real-world ecosystem, ready for a new wave of DeFi, NFT, and GameFi applications on Bitcoin.
Support from large funds and partner alliances across the industry helps Bitlayer spread rapidly, becoming an important infrastructure pillar in Bitcoin's transition phase.
Messari Infrastructure report, June 2024
Summary: What problems does Bitlayer solve and what is its potential?
Bitlayer is a Layer 2 solution that helps Bitcoin overcome limitations in speed, transaction fees, and programming capabilities that have existed for over a decade. Thanks to the application of BitVM, Rollup, zk-proofs, and trustless bridges, Bitlayer preserves the original security value of Bitcoin while adding flexibility, ushering in the era of BTCFi and Web3 on this platform.
The emergence of Bitlayer also opens up opportunities for capital flows from the DeFi, NFT, and GameFi ecosystems to converge on Bitcoin – which has the largest market capitalization. With strong backing from top VCs like Franklin Templeton, Polychain Capital, Framework Ventures, and a veteran founding team, Bitlayer has the potential to reshape Bitcoin's role in the new decentralized application era.
If successful, Bitlayer will become the leading Layer 2 that liberates Bitcoin from the sole role of value storage, moving to become a platform for global decentralized applications, directly competing with Ethereum and modern blockchains.
Frequently asked questions about Bitlayer (FAQ)
What is Bitlayer?
Bitlayer is a Layer 2 platform for Bitcoin, expanding programmability, security, and performance, integrating DeFi, NFT, and GameFi directly on Bitcoin.
Is Bitlayer compatible with Ethereum?
Bitlayer supports EVM, allowing the migration of dApps from Ethereum without changing source code, facilitating rapid community expansion.
What is the transaction speed and fees on Bitlayer?
Bitlayer's roadmap aims for 20,000 TPS and transaction completion in just 3 seconds, with fees significantly lower than traditional levels on Bitcoin.
What is BitVM Bridge?
BitVM Bridge is a decentralized bridge that allows BTC transfers between Layer 1 and 2 on Bitlayer without a third party, using zk-proofs and OP-DLC for verification.
What is the BTR Token used for?
BTR is the native Token used for staking, transaction fees, governance of the network, and rewarding the community as well as developers who contribute to the ecosystem.
Is Bitlayer a safe project?
Bitlayer applies a Security-equivalent model, with every transaction and smart contract directly protected by the original security power of Bitcoin, maximizing safety.
Who are the major investors in Bitlayer?
Funds like Franklin Templeton, Polychain Capital, and Framework Ventures lead funding rounds, affirming the project's credibility and potential.
Source: https://tintucbitcoin.com/bitlayer-btr-la-gi/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
